HELP! Verify information...
Date: Mon, 08/30/2010 - 14:41
Can someone verify if what I received from the Texas Office of Consumer Credit Commissioner is correct?
I emailed the forum last week about my payday loans and was told since 5 of the 6 were not licensed in Texas (were I reside) then I should close my bank account and inform them that I will only be paying back the amount loaned to me since they were not licensed in my state. I contacted the Texas OCCC just to cover all of my bases and this was there response. It just seems unfair for me to have to pay 2 companies that are not even in the United States, CashAdvance Network is in Vancouver and MyCashNow is in Panama. I have no idea where LoanPointUSA is even officed, but Integrity Advance is licensed in Delaware and OneClickCash is licensed in Utah, under another name.
"Federal statutes allow payday lenders to be licensed or registered in other states and then "export" the rates of that particular state thorough out the United States, known as Federal Preemption. Thus when you sign and take a proceeds from a loan, regardless of whether or not it is licensed in Texas, the loan may be regulated by another state. You would need to look at the Terms and Conditions of your contract in order to determine which states, if any, has statutory authority. In other words, "Who governs the Contract?" There should be a paragraph to that nature in the contract.
As with any contract, you are normally obligated to fulfill the terms and conditions of that contract unless there are viable reasons that you should not, i.e. fraud, deceptive practices, etc. This action, not completing the contract, normally requires the ruling of a court of competent jurisdiction."
I emailed the forum last week about my payday loans and was told since 5 of the 6 were not licensed in Texas (were I reside) then I should close my bank account and inform them that I will only be paying back the amount loaned to me since they were not licensed in my state. I contacted the Texas OCCC just to cover all of my bases and this was there response. It just seems unfair for me to have to pay 2 companies that are not even in the United States, CashAdvance Network is in Vancouver and MyCashNow is in Panama. I have no idea where LoanPointUSA is even officed, but Integrity Advance is licensed in Delaware and OneClickCash is licensed in Utah, under another name.
"Federal statutes allow payday lenders to be licensed or registered in other states and then "export" the rates of that particular state thorough out the United States, known as Federal Preemption. Thus when you sign and take a proceeds from a loan, regardless of whether or not it is licensed in Texas, the loan may be regulated by another state. You would need to look at the Terms and Conditions of your contract in order to determine which states, if any, has statutory authority. In other words, "Who governs the Contract?" There should be a paragraph to that nature in the contract.
As with any contract, you are normally obligated to fulfill the terms and conditions of that contract unless there are viable reasons that you should not, i.e. fraud, deceptive practices, etc. This action, not completing the contract, normally requires the ruling of a court of competent jurisdiction."
I have been checking back periodically to see if anyone responds
I have been checking back periodically to see if anyone responds to this i am very curious as to the answer....
I am concerned that no one has confirmed that this is wrong, whi
I am concerned that no one has confirmed that this is wrong, which makes me think it is right.
go by what your AG says not the banks or anybody else.i have dis
go by what your AG says not the banks or anybody else.i have discovered entities other than AG'S trying to interpret the laws,and it doesn't work that way.pdl's must be licensed in TX and there are no two ways around it.go through your AG,not some office in the pockets of creditors.
Yikes....that does sounds freaky. Contact your AG. Keep us poste
Yikes....that does sounds freaky. Contact your AG. Keep us posted!